Activision (ATVI) and Blizzard Entertainment have no mobile diversion that is among a world’s top-grossing mobile titles. It is therefore adult to King Digital to keep Activision applicable on a mobile games front. Yes, it is indeed good that Blizzard has generated over $1 billion in income from a PC/Console Overwatch game. However, this class-based shooter diversion is no longer among America’s tip 10 best-selling video games this year. Overwatch’s income generating appetite competence be starting to run out of gas.
It is therefore critical that we plead King Digital’s performance. Mobile gaming is now a much bigger concern than PC or console gaming. The opening of King Digital’s games foreordain a destiny of Activision in mobile gaming. Newzoo’s draft subsequent clearly illustrates that a estimated $46.1 billion income from smartphone and inscription video games this year is a constrained reason for ATVI investors to constantly lane King Digital’s sales performance.
Candy Crush Saga Is Still A $1 billion/Year Sales Machine
King’s five-year-old Candy Crush Saga diversion is still a really clever money generator for Activision. As per a May 2017 estimates of Sensor Tower, Candy Crush Saga’s tellurian net monthly income final month was $63 million. The pronounced volume is after SensorTower already deducted Apple (AAPL) and Google’s (GOOG) (NASDAQ:GOOGL) 30% app store commission.
Candy Crush Saga therefore still touts sum monthly bookings of around $90 million. This five-year-old mobile diversion is many expected still generating some-more than a 12-month trailing income of $1 billion!
PrioriData’s monthly sales theory for King’s Candy Crush Saga for final month is $61.9 million, $22.8 million from Android and $38.9 million from iOS devices. SensorTower information and PrioriData’s estimates should remonstrate we that Candy Crush Saga is still a bullion cave for Activision. King Digital is expected tighten to returning to a $2 billion/year income tide before Activision bought it.
The monthly estimates of SensorTower and PrioriData does not embody a Android income from a China chronicle of Candy Crush Saga. Tencent (OTCPK:TCEHY) is a China publisher of Candy Crush Saga by a possess MyApp Android App Store. we do not consider Sensor Tower or PrioriData has entrance to Tencent’s app store data. All we can news is that App Annie’s Chinese version of a May 2017 tellurian mobile games news identified Candy Crush Saga as a world’s no. 9 top-grossing iOS/Android mobile game.
(Source: App Annie)
My possess theory is that Candy Crush Saga’s Android chronicle in China is expected holding in $10 million in net monthly sales. This $10 million theory is substantially separate uniformly between Tencent and Activision.
App Annie’s May 2017 news still famous Activision/King Digital as a no. 3 top-grossing mobile games publisher, usually behind Tencent and NetEase (NTES). This feat is all since of King Digital’s multiple Candy Crush Saga-branded games.
(Source: App Annie)
To serve illustrate a bullion mine-like value of King Digital to Activision’s future, usually check out a day-to-day U.S. iPhone games income estimates of ThinkGaming. The five-year-old Candy Crush Saga is a series 1 top-grossing iPhone diversion in America. ThinkGaming’s normal sum daily sales theory for Candy Crush Saga is $2.04 million!
King’s Candy Crush-branded games are doing good among iPhone-using gamers in a U.S.A.
As per SensorTower’s estimates, Candy Crush Soda Saga had net tellurian monthly sales of $32 million final month from Android/iOS.
Three New Games From King Digital
The Candy Crush code is so essential that King digital is again beta contrast a new derivative diversion called Candy Crush Friends Saga. The soothing launch chronicle of Candy Crush Friends Saga is accessible in Mexico and a Philippines. Making new games out of an aged though bullion code is a intelligent pierce for King Digital. Candy Crush Saga and Candy Crush Soda Saga players who ran out of daily appetite allocations are prepared business for Candy Crush Friends Saga.
King Digital has also soothing launched Farm Adventure. It’s a subsequent iteration of King’s aged Farm Heroes Saga game. The other diversion that’s being beta tested by King is Legend of Solgard. The Legend of Solgard beta chronicle is not accessible here in a Philippines. However, examination YouTube videos of it assured me that Legend of Solgard is a mobile distraction of an old, 2011 tactical/puzzle RPG PC diversion called Might Magic: Clash of Heroes.
I wanted King Digital to duplicate Supercell’s Clash Royale or Clash of Clans. we theory duplicating an aged Might Magic PC diversion is an excusable diversification pierce from King. Legend of Solgard is really a vital depart from King’s match-3 nonplus genre.
Of all a 3 new games, we collect Legend of Solgard to have a best possibility to turn a $10 or $15 million/month pretension for King Digital. Legend of Solgard touts a same strategic/collectible label diversion [CCG] vibe of Activision’s Hearthstone: Heroes of Warcraft mobile game. Legend of Solgard could make adult for a diseased monthly sales (only $6 million net tellurian sales final May) of Hearthstone.
Candy Crush Saga’s stability $1 billion/year sum sales opening fit Activision’s $5.9 billion merger of King Digital. we never suspicion that Activision overpaid for King. Without a King Digital acquisition, Activision will still be a non-factor in a fast-growing mobile games industry.
King Digital’s income opening is a some-more critical long-term barometer than Overwatch’s sales when it comes to presaging Activision’s future. If some investors were overjoyed over Overwatch’s success, they should also applaud Candy Crush Saga’s steadfastly clever monthly sales.
I sojourn prolonged ATVI especially since we like King Digital’s success. The success of Overwatch substantially also desirous Supercell to emanate a new mobile game, Brawl Stars. Brawl Stars is a 3-versus-3 class-based locus shooter game. we now demeanour brazen to King Digital creating a mobile diversion formed on Activision’s Call of Duty initial chairman shooter PC game.
Disclosure: I am/we are prolonged ATVI, TCEHY, NTES, AAPL, GOOG.
I wrote this essay myself, and it expresses my possess opinions. we am not receiving remuneration for it (other than from Seeking Alpha). we have no business attribute with any association whose batch is mentioned in this article.